The iPhone has been killing it in Japan lately. Apple’s smartphone marketshare in the tech-obsessed country is continuing to dominate year-over-year, even though the company had a hard time giving out iPhones just five years ago.

With the iPhone 6’s bigger screen, the company is making more of an inroads than ever, but according to a report from Reuters, smartphones in Japan are facing stiff from competition from an unlikely suspect: flip-phones.

Samsung may be beating a tactical retreat. Photo: Killian Bell/Cult of Mac

Things aren’t looking too rosy for Samsung at the moment. Having seen profits slip due to its falling mobile sales, the flailing South Korean tech giant is reportedly considering throwing in the towel altogether in Japan, where it’s struggling more than elsewhere.

Samsung currently represents a miniscule 4 percent of the Japanese smartphone market, which puts it in sixth place. According to sources with Samsung, staying in Japan is actually losing rather than gaining the company money.

While Samsung hasn’t traditionally been a top-seller in Japan, here in 2015 it’s doing worse than ever: with the company’s favorite metric, marketshare, shrinking from 17 percent two years ago to low single digits today.

When we wrote about the traditional Japanese “Lucky Bag” special offer — which gives customers the chance to buy a $300 gift bag, containing cut-price luxuries like MacBook Airs and Apple TVs — many U.S.-based Cult of Mac readers complained that they weren’t given similar promotions.

I saw their point — at least until I glimpsed something much worse: photos showing the freezing Apple fans in question, lined up outside the Sapporo, Japan Apple Store on January 1.

You know that moment when an otherwise fun special offer turns into the last scene of The Shining (spoilers!)? This is it.

As per Japanese tradition, Apple has started handing out its Fukubukuro (a.k.a. “Lucky Bags”) to customers at its brick-and-mortar retail stores in Japan — giving some fortunate buyers massive discounts on the latest Apple products and accessories.

The bags are part of a special New Year offer, and are available in only limited quantities, with customers not knowing which they’re going to get until they’ve stumped up their ¥36,000 (around $300).

Check out the bag’s contents (as well as how you can get your hands on one, even if you don’t live in Japan!) after the jump:

Christmas may be over here in the United States, but the season’s just starting in Japan. Apple has just announced that it will kick off its annual “Lucky Bag” celebration in its Japanese retail stores starting January 2.

It was once thought that Japan disliked the iPhone so much that the Apple device couldn’t be given away for free. To paraphrase Dinah Washington, what a difference five years makes!

In October, the iPhone 6 held seven of the top eight smartphone positions (and nine out of the top 14). While sales figures are lacking, the data indicates the strength of the iPhone in Japan, according to a new report from Forbes.

SVP of Retail Angela Ahrendts made her first official public appearance as an Apple executive at the Friday opening of Apple’s tony new store in Tokyo, Japan.

Ahrendts posed for photos with fans who had turned up to see the opening of the upscale Omotesando Apple Store. Other Apple execs at the event included Retail Real Estate and Development Vice President Bob Bridger, Worldwide Apple Retail International sales VP Steve Cano and Online Stores VPs Jennifer Bailey and Bob Kupbens.